Polestar drops US ban appeal and exits | 32 dealers left holding the bag, Volvo gets to stay
TL;DR
Chinese-controlled Polestar has decided not to appeal a US federal ban, and will exit the US market. It sold only 5,747 vehicles in the US in 2025 (≈6% of global sales). 32 US dealers had invested in showrooms, staff training and brand-building — Volvo, also owned by Geely, was granted authorization to continue.
Chinese-controlled EV maker Polestar has decided not to appeal a US federal ban and will exit the US market — the Wall Street Journal reported on July 20. It's the first Geely-linked brand to be cut out since Biden's "China-linked connected vehicle software" rule was finalized in 2024.
Polestar spokesperson Michael Ofiara said: "We will focus our investment on markets where we have a strong brand position and can achieve profitable growth, and lean heavily into Europe." He said the company had "in-depth communication" with US authorities and does not believe an appeal could succeed.
The US ban takes effect for the 2027 model year onward, citing connected-vehicle data and foreign-access national security risks. Polestar sold 5,747 vehicles in the US in 2025, roughly 6% of global sales. Remaining Polestar 3 SUV and Polestar 4 inventory will be sold through.
The people who really got trapped aren't shareholders — it's the 32 US dealers. They poured millions into showrooms, staff training and brand-building, and got "please clean up on your own way out" as the reward. Volvo, also owned by Geely, kept authorization to sell — dealers' outrage over the double standard is real.
Polestar bet appeal was hopeless, cut its losses and swung to Europe; 32 US dealers paid the settlement cost of that political bet.
via InsideEVs / WSJ
Polestar spokesperson Michael Ofiara said: "We will focus our investment on markets where we have a strong brand position and can achieve profitable growth, and lean heavily into Europe." He said the company had "in-depth communication" with US authorities and does not believe an appeal could succeed.
The US ban takes effect for the 2027 model year onward, citing connected-vehicle data and foreign-access national security risks. Polestar sold 5,747 vehicles in the US in 2025, roughly 6% of global sales. Remaining Polestar 3 SUV and Polestar 4 inventory will be sold through.
The people who really got trapped aren't shareholders — it's the 32 US dealers. They poured millions into showrooms, staff training and brand-building, and got "please clean up on your own way out" as the reward. Volvo, also owned by Geely, kept authorization to sell — dealers' outrage over the double standard is real.
Polestar bet appeal was hopeless, cut its losses and swung to Europe; 32 US dealers paid the settlement cost of that political bet.
via InsideEVs / WSJ
